U.S. dollar is once again under pressure from trend followers: BofA

Current Situation of the U.S. Dollar and Market Impact

Bank of America reports that the U.S. dollar is once again under pressure from trend followers. Investors tend to adopt neutral positions, influenced by the recent weakness in U.S. economic data. With the market not expecting further interest rate hikes, the dollar is in a sellable situation. Additionally, as economic indicators in Europe and other developed countries improve, the relative strength of the dollar has been declining.

Interest Rate Trends are Key

The upcoming FOMC meeting will spotlight interest rate policy. However, the current market consensus suggests a low likelihood of rate hikes, which can further increase pressure on the dollar's sustainability. Investors are also amplifying their flight to safety amid continuous risk-off movements.

Technical Levels and Trends

Given the rising pressure from trend followers, there is potential for increased dollar selling in the short term, and this trend is expected to continue. However, there was no explicit mention of specific price levels, support, or resistance. Therefore, it’s challenging to provide clear buy or sell signals in this scenario. Traders need to remain alert to market fluctuations and monitor information closely.